RESEARCH PAPER
THE GLOBALIZATION OF SOFTWARE DEVELOPMENT
The software industry is critical to the economy because it has direct and indirect impacts on other industries. The global software industry is a key industry in the world economy and a catalyst that influences other industries. According to Marketline, the global software market had total revenues of $554 billion in 2013, with a growth rate of 11.3% between 2009 and 2013. Industry reports from Marketline, Statista, Gartner, and PricewaterhouseCoopers agree that the world’s leading software companies in 2014 were Microsoft, IBM, Oracle, and the German company SAP.
Most software companies are small or midsized and have a local focus. Entering the global market conveys many implications and challenges. Even though large companies have prominence and visibility, most of the global market is held by midsize companies. An important question is how small/midsize regional software companies can transcend the national realm and enter the global dimension, just like successful legends such as SAP.
The global software industry has traditionally been dominated by US firms. PricewaterhouseCoopers’s Global 100 Software Leaders list provides added insights: of the 100 global leaders, 67 are American companies. The UK has seven companies on the list, followed by Germany in third place, with only six companies. SAP ranks fourth, while the next closest German company is Siemens, at number 18. Interestingly, these two companies are included in the German Stock Index. For instance, in the German market, there are few cases of global success similar to SAP. Another interesting fact is that although India is one of the leaders in software outsourcing, surprisingly no Indian company is listed in the PricewaterhouseCoopers’s Global 100 Software Leaders list.
In your paper, you can explore some of these issues:
Analyze the state of the software industry in a specific country (Hungary) and explore the causes that either keep local software companies within a regional market or that allow them to become global.
Identify the role of the government. In some countries, the government has programs and initiatives to support the software development industry.
Identify at least 3 software-based companies in the country and include a table in the following format: Company name Web Site URL Is Global/Local Is Private/public Annual Revenue
| Company Name | Web Site URL | Is Global/Local | Is Private/public | Annual Revenue |
Provide an analysis of the strategies, strengths and weaknesses of the software companies in that country and identify some of the development projects and strategies they have used, or they should use for becoming global.
Sources must come from authoritative sources like journals, practitioner publications, and/or books.
Your list of references must be an annotated bibliography. Include a one-sentence abstract for each source. The abstract should be a brief, overall summary of the article (or web site), not one of the paragraphs in the article.
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